|
|
|
|
|
Home > News, Publications, Events > Publications
>
Upping the Ante for Whistleblowers: New Regulatory Reform Act Incentivizes Whistleblowers to Disclose Potential Violations of the Foreign Corrupt Practices Act to the Government
Upping the Ante for Whistleblowers: New Regulatory Reform Act Incentivizes Whistleblowers to Disclose Potential Violations of the Foreign Corrupt Practices Act to the Government
V&E Government Investigations and White Collar Criminal Defense E-communication,
June 28, 2010
Among its sweeping regulatory reforms aimed at the financial industry, a little-noticed provision of the Restoring American Financial Stability Act of 2010 (the "Act") likely will have a substantial impact on public companies subject to the U.S. Foreign Corrupt Practices Act (FCPA) by incentivizing “whistleblowers” who provide original information to the Securities and Exchange Commission (SEC) with a bounty in the event the SEC later recovers damages or penalties from the companies. While the potential bounty is not limited to FCPA cases, this whistleblower provision will open up yet additional avenues for the SEC and Department of Justice (DOJ) to investigate and prosecute FCPA violations. If enacted, the new legislation may lead to an increase in SEC-initiated actions that would reach a host of public companies operating in many industries. Although not yet signed into law, congressional leaders have resolved the differences between the House and Senate bills, and aim to pass a final bill to be signed by the President before July 4. So that companies may understand the potential impact of the new Act, we provide below a brief summary and a comparison of the whistleblower provision to a similar provision in the False Claims Act (FCA). Read the entire article here.
For more information, please contact Vinson & Elkins lawyers Craig Margolis, Bill Lawler, Rita Glavin, Yousri Omar, or Carl Jordan. Visit our website to learn more about V&E's Government Investigations and White Collar Criminal Defense and Employment, Labor and OSHA practices.
<< Back to Top
|